SNNP Reports Profit Decline Despite Margin Improvement in Q3
Siam Nistal Public Company Limited (SNNP) reported a consolidated net profit for the third quarter of 2025 totaling THB 129.55 million, representing a decrease of THB 33.77 million, or 20.68%, when compared to the corresponding period in the previous year.
This notable decline in net profit was primarily attributed to the dual impact of a general slowdown in consumer demand, which is a common result of seasonal factors, and a strategic increase in marketing and promotional expenditure during the quarter.
However, the company’s gross profit showed positive sequential movement.
In the third quarter of 2025, SNNP recorded a gross profit of THB 412.7 million, which is an increase of THB 6.8 million, or 1.7%, when compared to the THB 405.9 million achieved in the second quarter of 2025.
Crucially, the gross profit margin also saw an improvement, rising by 0.8% to reach 30.0% in the third quarter, compared to 29.2% in the second quarter.
This margin improvement was mainly driven by the company’s success in achieving more efficient management of its raw material and packaging costs, coupled with the favorable impact of the appreciation of the Thai Baht, which effectively reduced the cost of imported materials required for production.
Compared to the third quarter of 2024, the gross profit margin remained stable at 30.0%, demonstrating consistency in cost control over the longer term.
Domestic Sales Drive Growth Amidst Overseas Headwinds
The company’s performance in its domestic market continued to serve as a reliable engine for steady growth in the third quarter, successfully mitigating some of the negative pressures encountered elsewhere.
Domestic sales for SNNP increased steadily, a positive trend primarily supported by the sustained strong sales performance of its core product lines and the impact of continuous marketing activities aimed at expanding the overall customer base.
This dedication to targeted domestic marketing reflects a proactive strategy to maintain market share and volume in a challenging environment.
In contrast, SNNP’s overseas sales experienced a decline.
This drop was a result of various external economic pressures, including general global economic softening, the specific disruption caused by severe floods in northern Việt Nam, and rising geopolitical tensions along the crucial Thai-Cambodian border, which directly impacted logistics and consumer confidence in key export markets.
The company’s cost of sales in the third quarter of 2025 was THB 964.0 million, which represents an efficiency gain, as it was lower than the THB 972.5 million recorded in the third quarter of 2024, marking a decrease of THB 8.5 million or 0.9%.
This reduction in the cost of sales indicates that, despite the increase in total selling expenses, the underlying production and procurement processes for SNNP’s products are becoming more cost-effective and streamlined, a vital factor for maintaining profitability amidst fluctuating market demand.
Strategic Investment in Marketing for Long-Term Growth
A significant element contributing to the profit decrease, but viewed by the company as a strategic investment, was the substantial increase in marketing and promotional spending.
For the third quarter of 2025, the selling expenses to sales ratio for SNNP stood at 15.0%, marking a notable increase of 1.7% compared to the third quarter of 2024.
This deliberate rise in spending was primarily directed toward aggressive marketing and promotional campaigns designed to achieve two key objectives: to significantly enhance brand recognition among the vital and growing Gen Z consumer demographic and to expand into entirely new customer segments, all while effectively maintaining the loyalty of its existing consumer base.
This allocation of capital is considered a necessary strategic investment intended to lay a solid foundation for the company’s long-term sustainable growth, ensuring that SNNP remains competitive and relevant to future generations of consumers.
By proactively addressing market evolution through targeted expenditure, the company is positioning itself to capitalize fully on the expected upturn in consumer demand once seasonal and external headwinds subside.
This forward-looking approach underscores management’s commitment to strategic market development, prioritizing future revenue potential over short-term profit maximization in the third quarter’s typically slower period.
